| Topic |
Accounting Metric |
Category |
Unit of Measurement |
Disclosure |
| Promoting Transparent & Efficient Capital Markets |
(1) Number and (2) average duration of (a) halts related to public release of information and (b) pauses related to volatility |
Quantitative |
Number, Minutes |
- Tokyo Stock Exchange (TSE) has measures in place to halt trading when necessary in order to ensure fair price formation and investor protection. Trading is halted when information arises that may have a material effect on investment decisions and the details of that information are unclear or TSE deems it necessary to make the content of the information known, or when trading conditions are deemed abnormal. After the suspension of trading in the case of information that may have a material effect on investment decisions, as a rule, trading will resume 15 minutes after the issuer of the security discloses the information and TSE confirms this disclosure.
- The list of issues for which TSE has halted trading is published on the below page.
Trading Halts
|
| Percentage of trades generated from automated trading systems |
Quantitative |
Percentage (%) |
- TSE, Osaka Exchange (OSE), and Tokyo Commodity Exchange (TOCOM) are unable to track the percentage of trades generated from automated trading systems because they do not require trading participants to disclose this information. However, the Financial Services Agency tracks registrations of high-speed traders and trends in high-speed trading, and publishes information on its website.
Trends in High-speed Trading
|
| Description of alert policy regarding timing and nature of public release of information |
Discussion and Analysis |
n/a |
- In Japan, the statutory disclosure rules under the Financial Instruments and Exchange Act and the timely disclosure rules at financial instruments exchanges coexist to serve the function of providing information for investment decisions. With the fundamental belief that providing timely and appropriate corporate information to investors is the foundation of a healthy market, TSE includes provisions in its Securities Listing Regulations which require listed companies to disclose material corporate information in a timely and appropriate manner. Please refer to the below page and Chapter 4, Section 2 of the Securities Listing Regulations for details.
Timely Disclosure System
Rules
- Timely disclosure information from listed companies can be viewed through the "Company Announcements Service".
Company Announcements Service
- In addition, the TSE "Listed Company Search" provides information on TSE-listed companies including timely disclosure materials from the past ten years and fundamental information on each company.
Listed Company Search
|
| Description of policy to encourage or require listed companies to publicly disclose environmental, social, and governance (ESG) information |
Discussion and Analysis |
n/a |
- Tokyo Stock Exchange has established a Corporate Governance Code that compiles key principles that contribute to effective corporate governance, also incorporating environmental, social, and governance elements. The Code is principles-based and adopts a comply-or-explain approach: listed companies are required to explain the reasons for any non-compliance with the principles of the Code (all principles for Prime and Standard Market companies; basic principles for Growth Market companies) in a Corporate Governance Report.
Enhancing Corporate Governance
- We also work to promote understanding of and reduce the burden of ESG information disclosure for listed companies through provision of various guidance documents and the JPX ESG Knowledge Hub.
ESG Knowledge Hub
Practical Handbook for ESG Disclosure
Support for listed companies
- Furthermore, we are a member of the Sustainable Stock Exchanges Initiative and work with exchanges around the world to encourage ESG investment and promote information disclosure.
|
| Managing Conflicts of Interest |
Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or regulations |
Quantitative |
Reporting Currency |
Nothing to report (FY2022) |
| Description of processes for identifying and assessing conflicts of interest |
Discussion and Analysis |
n/a |
- Under the Financial Instruments and Exchange Act, exchanges are required to "properly conduct the self-regulation related services… in order to ensure fair sales and purchase of securities and market transactions of derivatives… as well as to protect investors." Japan Exchange Regulation (JPX-R), JPX's self-regulatory organization, works on the listing and delisting of financial instruments and other products, investigations on the status of compliance with laws and regulations by members, etc., and other operations necessary to ensure the fairness of transactions in the financial instruments markets. For more information, please visit the below page.
Outline of Self-Regulatory Operations
|
| Managing Business Continuity & Technology Risks |
(1) Number of significant market disruptions and (2) duration of downtime |
Quantitative |
Number, Hours (h) |
Nothing to report (FY2022) |
| (1) Number of data breaches, (2) percentage involving personally identifiable information (PII), (3) number of customers affected |
Quantitative |
Number, Percentage (%) |
Nothing to report (FY2022) |
| Description of efforts to prevent technology errors, security breaches, and market disruptions |
Discussion and Analysis |
n/a |
- JPX, TSE, OSE, TOCOM, JPX Market Innovation & Research (JPXI), JPX-R and Japan Securities Clearing Corporation have established a Basic Approach to Information Security to appropriately protect information assets. Please refer to the below page for details.
Basic Approach to Information Security
- JPX has formulated an IT Master Plan with the aim of clearly communicating its direction and strategy on IT internally and externally, and to drive business by aligning management and IT policies. As indicated in the plan, JPX aims to promote initiatives in the two categories of "areas needing steady progress" and "areas needing swift responses" in an integrated manner from a system services perspective, under a new organizational structure that includes JPXI. To achieve this goal, we are continuously striving to further improve our multifaceted fault tolerance and resilience, including the construction of a remote backup system at the Kansai secondary data center, while also taking on the challenge of flexibly and proactively providing new services through expansion of system services and use of information resources. To accelerate these efforts, we are also focusing on the development of human resources with expertise in both digital and business fields, as well those with specialized knowledge and skills.
IT Master Plan (FY2022-FY2024)
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